By Your Brand Team September 20, 2024
Many new clothing brands focus only on FOB price and forget about import duties — which can add 5-30% to your landed cost. Here’s how to classify your products and estimate duties correctly.
What Is an HS Code?
The Harmonized System (HS) code is a 6-10 digit number that customs authorities worldwide use to classify products. For apparel, the first 4 digits are globally standardized:
- 6101-6110: Knitted garments (t-shirts, sweaters, knit dresses)
- 6201-6212: Woven garments (shirts, trousers, jackets, dresses)
The remaining digits vary by country. Getting the right code matters — a wrong classification can mean overpaying duties or facing customs penalties.
Common Apparel HS Codes
| Product | US HS Code | EU HS Code | General Duty (US) |
|---|---|---|---|
| Men’s cotton t-shirt | 6109.10.00 | 6109.10.00 | 16.5% |
| Women’s cotton dress | 6204.42.40 | 6204.42.00 | 8.4% |
| Men’s polyester jacket | 6201.93.30 | 6201.93.00 | 27.7% |
| Cotton hoodie (unisex) | 6110.20.20 | 6110.20.10 | 16.5% |
| Polyester sportswear | 6110.30.20 | 6110.30.10 | 32% |
Note: Rates above are general (Column 1) rates. Free trade agreements can significantly reduce these.
How to Reduce Your Import Duty
1. Free Trade Agreements
- US: Goods from countries with FTAs (Mexico, Canada under USMCA; South Korea under KORUS) may qualify for 0% duty
- EU: GSP (Generalized System of Preferences) gives reduced or zero duty for many developing countries
- RCEP: Asian countries (China, Vietnam, etc.) have reduced tariffs among members
2. Fiber Content Strategy
Duty rates often depend on fiber content. A “cotton/poly blend” can sometimes be classified under the lower-duty fiber:
- 100% cotton t-shirt: 16.5% (US)
- 60% cotton / 40% polyester: may classify under poly → check rules
Consult a customs broker before finalizing your fabric composition — small changes can save thousands.
3. Country of Origin Rules
“Substantial transformation” determines origin. For apparel, the general rule is where the garment is assembled (cut and sewn), not where the fabric is made.
This means:
- Fabric woven in China + garment sewn in Vietnam → Country of origin: Vietnam
- This can qualify the garment for preferential duty rates under US-Vietnam or EU-Vietnam agreements
4. De Minimis Thresholds
- US: $800 (shipments under this value enter duty-free)
- EU: €150
- UK: £135
For small test orders or samples, stay under the de minimis threshold to avoid duties entirely.
Practical Example
Scenario: You’re importing 2,000 cotton hoodies from China to the US.
- FOB price: $8.00/pc
- HS code: 6110.20.20 → 16.5% duty
- Duty: $8.00 × 16.5% = $1.32/pc
- Total duty: $1.32 × 2,000 = $2,640
If you could shift assembly to a USMCA country (Mexico), duty drops to $0 — saving $2,640 on a single shipment.
Work With a Licensed Customs Broker
This guide is a starting point, not legal advice. Always work with a licensed customs broker in your destination country to:
- Confirm the correct HS code for your specific product
- Check if your product qualifies for FTA preferences
- Calculate the total landed cost before you place an order
Need Help With Logistics?
We help brands navigate customs, calculate landed costs, and find the most cost-effective shipping routes. Contact us for a logistics consultation.